I'd argue that a nuclear Iran is not the only threat to Israel. Pretty much every other nation in the region hates their guts and wants them wiped off the map, and Israel has only stopped this from happening due to western support for their military. Iran nuking them is definitely a threat. But the other big threat Israel must contend with is losing Western support and munitions. Without that, a coalition of Arab states would overrun Israel in a conventional war.
My bet: Israel knows it is losing the war of public opinion in the West. So it is trying to start a war with Iran to get the West to support it again. Your ally committing genocide against an enemy that has almost no resources and no means of escape is a difficult stance to maintain. But supporting your ally in a war against your sworn enemy has a lot more public appeal - or so Israel hopes.